The proliferation of digital technologies has enabled cybercriminals to commit various crimes, such as hacking, phishing, scamming, identity theft, impersonation, etc. They also use cyberspace to commit financial crimes like money laundering and terrorist financing by conducting cyber attacks on customer databases of a company or financial organization like banks. Online gaming is a buzzing industry these days, therefore, having the most vulnerability to crime. The gaming sector must benefit from AI-backed biometric identification of customers during the onboarding process.
What is Biometric Authentication?
Due to the rising threat of cyber financial crimes, a high-tech biometric authentication system is needed for every organization, be it financial gaming or any non-financial firm. Biometric verification refers to identifying a person by evaluating one or more biological characteristics. Every human being is biologically different from another and possesses unique traits. These distinguished traits include fingerprints, retina or iris scanning, facial features recognition, handwriting recognition, voice pattern, and written signatures. Fingerprint recognition is the oldest and most-used type of biometric technology used predominantly in almost every organization. The state-of-the-art biometric technology registers a copy of customers’ identifiers in its database and preserves the data for future entries. Thus, gaming companies must adopt adequate biometric solutions to ensure security, transparency, seamless know-your-customer procedure, and AML/CFT compliance.
KYC Digital Onboarding in Gaming Industry
Like every financial and non-financial organization, online gaming firms implement digital procedures during customer onboarding, as it is a requirement of this digital age. Digital KYC procedures comprise automated document verification of customers during their registration with organizations. Biometric identification is another essential KYC process that a gaming enterprise must include if it has not already. Moreover, it is eminently observed that the gaming sector possesses loopholes in security and transparency, which is why criminals exploit it for illicit monetary practices. Therefore, a biometric identification system may prove a key player for the gaming industry in combating the rising threats of money laundering and other financial crimes, including terrorism-sponsoring.
Biometric ID & Age Verification in Online Gaming
According to official data, the market size of biometric authentication technologies accounted for up to USD 43 billion in 2022. Such figures highlight the growing demand and significance of biometric identity verification services. The online gaming industry is known for its emphasis on age verification during customer onboarding. This is due to the sensitive content exposure for young minds that is detrimental to their mental well-being. Moreover, gaming is much susceptible to criminal activities, such as money laundering, due to its features like user anonymity. Hence, customers’ age must be verified as a part of the KYC process of your gaming company by requiring government-issued identity documents like a driver’s license. Moreover, it proves essential in protecting young customers from inappropriate content and advertisements for underage gamers. This underscores the need for biometric identification during the KYC procedure.
Facial Recognition-Based Biometric User Authentication
Financial organizations and non-financial industries are widely transitioning to biometric facial and voice recognition. The biometric system detects facial features such as eyes and eyebrows to recognize and store customers’ identities in its database. The face match algorithm compares the stored image with the real-time captured one to verify whether both photographs belong to the same person. Face IDs are used in mobile phones as a secure log-in option, but more prominently, they are used in the fintech industry. Digital banking requires either fingerprint, face recognition, or even both to access banks’ mobile applications. The global facial recognition market is expected to reach 8.5 billion US dollars in 2025. Therefore, online gaming firms must integrate facial biometric authentication to guarantee security and shield customers from potential criminal activities like money laundering. Moreover, it would aid them in AML/CFT compliance and enhance their credibility in the eyes of both customers and regulatory authorities.
Cloud Technology In Biometric Security Systems
Cloud technology makes biometric data more portable and accessible, regardless of a person’s location. It enables organizations to perform their customers’ biometric recognition anywhere and anytime. It can be labelled as a revolutionary technology because of its efficiency and precision. Gaming organizations must enhance their user-friendliness by adopting cloud technology. It will increase the organization’s security by verifying customers through biometric identification. Furthermore, with its portability and accessibility, it elevates the customer experience, hence, increasing the organization’s reputation. All in all, biometric recognition using cloud technology is vital for online gaming companies for a swift customer experience and ensuring AML compliance.
In a Nutshell…
The above discussion states that biometric identification is critical to protect the online gaming industry from financial criminals. Facial identity verification is a more reliable method to authenticate customers during KYC procedures. It guarantees the company’s and its customers’ overall security while ensuring compliance with anti-money laundering and counter-terrorism financing.